The meeting with Vaishnaw assumed significance as it focused on expediting the disbursal of the IRFC loan required for the Hyderabad Metro Rail project and addressing hurdles in the takeover of Metro Phase-I.
Hyderabad: Chief Minister A. Revanth Reddy on Monday said that discussions with Union railway minister Ashwini Vaishnaw on the pending Indian Railway Finance Corporation (IRFC) loan for the Hyderabad Metro Rail project were held in a positive atmosphere and expressed confidence that the issue would be resolved soon.
Speaking to reporters after a high-level meeting in Delhi, the Chief Minister said he, along with Union coal and mines minister G. Kishan Reddy, met Vaishnaw to discuss the release of the IRFC loan and other pending issues relating to Hyderabad Metro Rail.
The meeting with Vaishnaw assumed significance as it focused on expediting the disbursal of the IRFC loan required for the Hyderabad Metro Rail project and addressing hurdles in the takeover of Metro Phase-I.
Revanth Reddy said he and Union coal minister Kishan Reddy would meet Union urban affairs minister Manohar Lal Khattar on Tuesday morning to pursue the matter.
Though neither the Telangana government nor the Centre officially disclosed the outcome of the discussions, official sources said the railway minister gave a strong assurance that he would facilitate the release of the loan at the earliest.
The sources said Vaishnaw advised the Telangana government to revisit and rework the modalities for repayment of the proposed IRFC loan, pointing out that the earlier memorandum of understanding (MoU) entered into by the state government was not comprehensive enough.
Under the earlier arrangement, the state government had proposed repayment of the IRFC debt after allocating revenues generated through Metro ticket sales, advertisements and real estate earnings towards the operation and maintenance of Metro.
However, the Centre reportedly insisted that debt repayment to IRFC should receive first charge on revenues every month, with the remaining funds being utilised for operations and maintenance. The Telangana government is understood to have agreed to examine the proposal and enter into a revised MoU.
During the meeting, Revanth Reddy and Kishan Reddy also sought early approval and Central financial assistance for the proposed expansion of the Hyderabad Metro Rail network. Discussions were held on clearing obstacles to secure an IRFC loan of around `13,600 crore for the Metro project and to complete the takeover of Metro Phase-I from L&T.
The Chief Minister's meeting with the railway minister came after sustained efforts by the Telangana government over the past week. Revanth Reddy had written two open letters to Kishan Reddy seeking his intervention to facilitate meetings with both Ashwini Vaishnaw and Manohar Lal Khattar.
In the letters, he highlighted that IRFC had halted disbursement of the nearly `13,600 crore loan after the May 30 deadline stipulated under the existing MoU, creating obstacles in completing the takeover process of Metro Phase-I from L&T.
In his communications, the Chief Minister stated that Hyderabad Metro Rail was a crucial infrastructure project for both Hyderabad and Telangana and stressed the need for an early decision on pending issues. He informed Kishan Reddy that he would be in Delhi on June 22 and 23 and requested that meetings be arranged with the Railway Minister and the urban affairs minister.
He said he was prepared to present all necessary documents to resolve the IRFC financing issue, secure approvals for Hyderabad Metro Rail Phase-II, and expedite Central clearances.
Earlier, on June 17, Revanth Reddy had also written an open letter urging Kishan Reddy to help secure the immediate release of the IRFC loan and obtain necessary approvals from the Centre for the proposed Metro Phase-II project.
Responding to the Chief Minister's request, Kishan Reddy facilitated Monday's meeting with Vaishnaw and also arranged Tuesday's meeting with Khattar, where discussions are expected to continue on both the IRFC loan issue and approvals for Metro Phase-II expansion.
